AB InBev Seeking Finance for SABMiller Deal
Potential Deal Would Bring Together the World's Two Largest Brewers
Budweiser cans run through a filling machine at an Anheuser-Busch InBev brewery in Los Angeles. Associated Press LONDON— Anheuser-Busch InBev BUD -1.03% NV is talking to banks about financing what could be a roughly £75 billion ($122 billion) deal to buy global beer rival SABMiller SAB.LN +10.79% PLC, according to a person familiar with the matter.
A tie-up between the world's two largest brewing companies has been rumored for years, but a revival in global merger activity this year has sparked renewed speculation about a deal. AB InBev isn't in active discussions with SABMiller, said the person, explaining the company is waiting to line up its financing before making a formal approach.
More Heineken First-Half Net Profit Falls (8/20/14) European Brewers Are Hurt in Russia (8/20/14) SABMiller Beer Volumes Rise (7/24/14) Beer Makers Pray for a Fruitful Summer (6/29/14) Heineken to Open New Brewery in Ethiopia (6/20/14) Is InBev's Latest Buy an Aperitif Before a Megadeal? (1/20/14) The talks about financing come on the heels of an approach by SABMiller to buy Dutch brewer Heineken HEINY -2.31% NV, which Heineken said Sunday it had rejected. The U.K. brewer hasn't been discouraged by Heineken's initial rejection and would consider another bid, according to another person familiar with the discussions.
AB InBev had a nearly 20% share of the global beer market in 2013, according to data service Euromonitor. It is trailed by SABMiller, with a 9.6% share, and Heineken, with a 9.3% share.
SABMiller, maker of Foster's, Peroni and Miller, is interested in Heineken's eponymous beer brand, which it would distribute through its channels in Africa, according to the person familiar with SABMiller's discussions. The person added that pursuit of a deal with Heineken wasn't motivated by a desire to stave off a bid from AB InBev.